Gold Price Forecast: XAU/USD skids below $3,300 as investors digest US tariff jitters

• Gold price drops below $3,300 as investors start digesting global trade risk.
• Trump prepares to announce new tariff rates for over seven countries.
• Investors await the release of the FOMC minutes.

Gold price (XAU/USD) slips below the round-level support of $3,300 on Wednesday. The precious metal faces selling pressure ahead of the announcement of new reciprocal tariff rates for over seven countries by United States (US) President Donald Trump, which have failed to sign a trade pact during the 90-day pause period.

"We will be releasing a minimum of 7 Countries having to do with trade, tomorrow morning, with an additional number of Countries being released in the afternoon. Thank you for your attention to this matter!" Trump wrote.

Over the weekend, Trump announces new tariff rates for 14 nations, out of which Japan and South Korea were notable as they are leading trading partners of the US.

While the impact of new tariff rate list is expected to be limited as it will unlikely have names of any prominent trading partners. US President Trump has expressed that trade negotiations with China, Eurozone, and India are going smoothly.

Theoretically, heightened global economic tensions improve demand for safe-haven assets, such as Gold.

Meanwhile, firm US Dollar (USD) has also limited the Gold price's upside. The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, trades firmly near the weekly high around 97.80 posted on Tuesday.

Additionally, US President Trump has proposed 50% tariffs on copper and 200% on pharmaceuticals.

Going forward, investors will focus on the Federal Open Market Committee (FOMC) minutes for the June 17-18 policy meeting in which the Federal Reserve (Fed) left interest rates steady in the range of 4.25%-4.50%.

Gold technical analysis

Gold price breaks below the upward-sloping trendline of an Ascending Triangle formation on a daily timeframe, which is placed from the April 7 low of $2,957. The horizontal resistance of the above-mentioned chart pattern is plotted from the April 22 high around $3,500. Theoretically, a breakdown of the asset below the upward-sloping trendline results in a sharp downfall.

The precious metal trades below the 20-day Exponential Moving Average (EMA) around $3,334, suggesting that the near-term trend has turned bearish.

The 14-day Relative Strength Index (RSI) oscillates inside the 40.00-60.00 range, indicating a sideways trend.

Looking down, the Gold price would fall towards the round-level support of $3,200 and the May 15 low at $3,121, if it breaks below the May 29 low of $3,245

Alternatively, the Gold price will enter in an unchartered territory if it breaks above the psychological level of $3,500 decisively. Potential resistances would be $3,550 and $3,600.

Gold daily chart